Portfolio review and suggestions

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
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Topic Author
dayfive
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Joined: Sun Feb 11, 2024 12:30 pm

Portfolio review and suggestions

Post by dayfive »

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Last edited by dayfive on Mon Feb 12, 2024 6:10 am, edited 3 times in total.
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retired@50
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Location: Living in the U.S.A.

Re: Portfolio review and suggestions

Post by retired@50 »

dayfive wrote: Sun Feb 11, 2024 12:36 pm New here and seeking advice and review.
Welcome to the forum.

Please consider editing your post using the pencil icon to provide full fund names and expense ratios, along with percentages of total portfolio that exist in each account.

See the Asking Portfolio Questions format for more specifics.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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retiredjg
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Re: Portfolio review and suggestions

Post by retiredjg »

Dayfive, welcome to the forum. :happy

We have a format for people to use when asking portfolio questions. You can find it in the link at the bottom of this message. You don't have to follow it exactly, but it is helpful if you.

I doubt that anybody here knows all those tickers and I doubt that anyone will look up that many. If you do nothing else, add the fund name and the expense ratio for each of those tickers. Otherwise people have no idea what you are talking about.

We do not currently have a 25% tax bracket, but the income you report probably means you are in the 24% bracket unless some of that income is tax free. Does that seem right to you?

Who do the TSP accounts belong to and how much is being contributed each year?
invest4
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Joined: Wed Apr 24, 2019 2:19 am

Re: Portfolio review and suggestions

Post by invest4 »

Some initial comments:

Asset Allocation

* Completely fine to continue with high stock allocation provided you know yourself and can weather the inevitable volatility that comes with it.

* International: If you are going to have international in your portfolio, the advice is that you have no less than 20% (and up to 40%).

* General: if you own anything that doesn't really 'move the needle' in your portfolio (a small allocation to International for example)...decide to make it count or get rid of it as it doesn't matter is is simply clutter in your portfolio.

Expenses

* While you are still planning to work for awhile and the future is often fuzzy, you should think about how much income you think you will need when no longer working to help you identify your goals and assess how to get there.

https://www.investopedia.com/terms/f/fo ... t-rule.asp

As an example, if you need 100K income per year to support a 30 year retirement, you will need 2.5M (25X your annual expense) and withdraw no more than 4% a year. This is a starting point.

Do not underestimate the value of simplicity I don't get a good sense of how you are setting up your portfolio and the rationale behind it. Positively, the funds are consistent between your accounts. Are you limited in what you can invest in within your Roth? Generally speaking, you don't need more than Total US (VTI), Total Intl (VXUS), and whatever floats your boat for bonds (BND or other for example).


Questions

1. No one cares about your money more than you do. You can manage your money for yourselves and this forum is available to assist when needed. Save your money and get rid of the advisor...today. A lot of folks use Fidelity hopefully can utilize it to make a simple and enduring portfolio for the long term.

2. Others can comment on backdoor Roth. Never used it myself.

3. I didn't look up the tickers you provided...suggest you edit your post so we can easily know what they are, why you picked them and what %s for each you propose and why.

Best wishes.
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mhadden1
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Re: Portfolio review and suggestions

Post by mhadden1 »

dayfive wrote: Sun Feb 11, 2024 12:36 pm
Current Salary: $160,000 combined yearly
Pension and annuity (receiving currently with above salary and continued for life) $108,000/year
Money currently added to retirement—zero—just basic savings because the govt thinks we make too much apparently.
Is your income $160k salary + $108k pension = $268k total?

Do you have a workplace retirement savings plan like a 401k?
Retired 12/31/2015
Topic Author
dayfive
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Joined: Sun Feb 11, 2024 12:30 pm

Re: Portfolio review and suggestions

Post by dayfive »

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Last edited by dayfive on Mon Feb 12, 2024 6:10 am, edited 1 time in total.
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retired@50
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Re: Portfolio review and suggestions

Post by retired@50 »

dayfive wrote: Sun Feb 11, 2024 12:36 pm New here and seeking advice and review. We’ve not been given straight answers from our “advisor”.

Mutual Funds
Capital World Growth and Income Fund CWGIX: 14.5k
American Funds Europacific Growth A AEPGX: 12.4k
American Funds Fundamental Invs A ANCFX: 15.8k
The Investment Company of America - A AIVSX: 16.2k
SMALLCAP World Fund - A SMCWX: 11.6k

Questions:
1. Looking to get out of high front end load fee funds and switch from Amer. Funds and start investing any new savings into Fidelity
2. Start to invest in other funds due to inability to contribute to Roth. Backdoor roth?
3. Looking for advice on which Fidelity funds to invest in. Top three in consideration are: FSELX, FSPTX, FXAIX to spread across high, medium and low risk.
Open to all suggestions.
You need to get away from your adviser. Consider transferring accounts to Fidelity in-kind. Then sort out what to keep and what to sell after you get a better picture of the income tax consequences.

Each of the funds listed above has a high expense ratio (0.6% - 1.0%) and a front end sales load. This adviser is costing you dearly. In addition to the high expense ratios, and the front end loads, please tell me you're not also paying an annual assets under management fee... :shock:

You can do much better by using the Fidelity trio of FSKAX for US Stocks, FTIHX for International stocks, and FXNAX for US Bonds.

See the Boglehead wiki for more: https://www.bogleheads.org/wiki/Getting_started
3 fund portfolio: https://www.bogleheads.org/wiki/Three-fund_portfolio

Regards,
Last edited by retired@50 on Sun Feb 11, 2024 11:05 pm, edited 1 time in total.
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Topic Author
dayfive
Posts: 3
Joined: Sun Feb 11, 2024 12:30 pm

Re: Portfolio review and suggestions

Post by dayfive »

The purchase of all of these high end load funds is a main reason I am here....desperate to make better decisions and figure out a better plan.

Some of the initial advice was suggested decades ago, we let our money sit and build and did not do due diligence in watching these fees. I believe some of these funds initially were not front end load, but after X years transferred to these A funds carrying far too pricey of fees (and we were unaware). Believe me, we acknowledge this brutal error, our advisor did not say a thing (happy with our ignorance). At present, we're getting out, transferring and moving forward. Learning as much as we can,as quickly as we can. We are angry with ourselves and wish I would have stumbled across this site long ago.

Appreciate all the feedback thus far.
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Duckie
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Re: Portfolio review and suggestions

Post by Duckie »

dayfive wrote: Sun Feb 11, 2024 12:36 pm Age: both 49

Desired Asset allocation: 90% stocks / 5% bonds
5% bonds is really low for ages 49. I'd increase that to at least 20% bonds.
Desired International allocation: 5% stocks
5% is almost not worth bothering.
Fund Details:
Mutual Funds
Capital World Growth and Income Fund CWGIX: 14.5k
American Funds Europacific Growth A AEPGX: 12.4k
American Funds Fundamental Invs A ANCFX: 15.8k
The Investment Company of America - A AIVSX: 16.2k
SMALLCAP World Fund - A SMCWX: 11.6k
Is this a taxable account? If so, find out the unrealized gains/losses for every fund. You need to know what the tax-hit will be if you sell. You might choose to roll these to Fidelity "in-kind" and sell there when optimal.
Roth IRA
Sell everything and move the cash to Fidelity.
Roth IRA – Spouse
Sell everything and move the cash to Fidelity.
His TSP – Roth: 24.5k (previous employer) L2030 Fund (no longer contributing)
His TSP – Traditional 58.2k (current employer) L2035 Fund (contributing 23,000/year)
It looks like you can hold different funds in the two accounts. That's good. Put stocks (probably just the C Fund) in the Roth TSP and just bonds (probably the G Fund) in the Traditional TSP.
Beneficiary IRA
Sell everything and move the cash to Fidelity
Windfall contains another 45 stocks
Are these 45 stocks still in the Beneficiary IRA or are they in taxable? Either way we need to dollar amounts to figure percentages. I have a portfolio example but I need to know where these are held and how much they are.
Looking to get out of high front end load fee funds and switch from Amer. Funds and start investing any new savings into Fidelity
For the IRAs sell and transfer cash. For taxable probably transfer "in-kind" and sell at Fidelity later.
Start to invest in other funds due to inability to contribute to Roth. Backdoor roth?
The backdoor Roth method would be suitable for you.
Looking for advice on which Fidelity funds to invest in. Top three in consideration are: FSELX, FSPTX, FXAIX to spread across high, medium and low risk.
Open to all suggestions.
If using mutual funds instead of ETFs I recommend for US stocks FSKAX in taxable and FZROX and C Fund in tax-sheltered. For international stocks FTIHX in taxable and FZILX in tax-sheltered. For bonds FXNAX and the G Fund in tax-sheltered.
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